Project on: Analysis of Financial Performance of Ceramic Industry in Bangladesh 2001-2005

Abstract

The main purpose of the report is to provide a basic idea of what Ratio analysis is and how the activity, liquidity, Long-term debt & solvency and profitability ratio analysis are used to evaluate the periodic financial success of a firm. Generally, ratios are more informative than raw numbers. Ratios provide meaningful relationships between individual values in the financial statements. I have completed the ratio analysis of Fu-Wangn Monno, Standard, and Bengal Fine Ceramic Ltd. and my concentration on activity, liquidity, long-term debt & solvency and profitability ratio analysis. There are basically four uses of financial ratio analysis: to track individual firm performance over time, and to make comparative judgments regarding firm performance. Firm's performance is evaluated using trend analysis-calculating individual ratios on a per*period basis, and tracking their values over time. I tried to focus and analyze all aspects of ratio analysis but it was not possible for time constraint. To grasp the actual business scenario, I calculated and compared data over a period of several years. This allows me to identify trends in these measurements.